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Original poster

What would you do with £120,000 at 18?

55 replies

Melonportal · 04/12/2023 18:53

My 18 year old brother has just inherited £120,000 in very sad circumstances. He's quite young and vulnerable for his age and has no real interest in the money - he's said he'll do whatever I tell him with it.

So, any ideas? I'm concerned about him having easy access to large sums in case someone takes advantage of him. What would you do?

OP posts:
TerfTalking · 04/12/2023 18:54

Invest it for him until he was probably 25 but agree to review it at 21. Tell him to tell no one.

Leo227 · 04/12/2023 18:57

what's his housing and work situation? I'd be buying a property asap with that much

PuttingDownRoots · 04/12/2023 18:57

Invest £100,000 towards future house deposit

Use £20k for university, car etc.

Original poster
Melonportal · 04/12/2023 18:59

He's living with my parents and doing an apprenticeship

OP posts:
SirenSays · 04/12/2023 18:59

Travel the world

Bromptotoo · 04/12/2023 19:02

PuttingDownRoots · 04/12/2023 18:57

Invest £100,000 towards future house deposit

Use £20k for university, car etc.

That pretty much.

It's very easy to piss £100k up a wall in bite size chunks at that age. It needs to be invested so as to keep it away from being pillaged while not totally removing access if it's needed for a home or similar.

frogswimming · 04/12/2023 19:05

Buy a house. Rent out if he doesn't want to move in yet.

Notamum12345577 · 04/12/2023 19:06

frogswimming · 04/12/2023 19:05

Buy a house. Rent out if he doesn't want to move in yet.

Depends on where they live. Down south you wouldn’t buy a grotty 1 bed flat with that money

Rainbowshit · 04/12/2023 19:08

House deposit.

Original poster
Melonportal · 04/12/2023 19:11

We're in the north east. He could probably buy a small house outright, but I don't think he'd cope well on his own.

OP posts:
user14699084785 · 04/12/2023 19:14

Invest 100k but not in a buy to let, more hassle than its worth! ISA and other long term investments. Probably not quite enough to use a financial adviser, but your bank should have someone that would help if investments are not something you’re familiar with.
20k in a high interest account, for car/travel/enjoying yourself while you’re young!
Agree with PP - don’t tell his friends.

LimeCheesecake · 04/12/2023 19:16

I think the house idea is good, but as a buy-to-let, get him to put the rent income into a separate account he doesn’t touch. In a decade he can sell it and buy somewhere he wants to live.

Cas112 · 04/12/2023 19:17

Use a bit for travels and ask to keep it to the side for him to get a house when he's back

LimeCheesecake · 04/12/2023 19:18

sorry posted too soon and my post didn’t make much sense! Buy a house /flat that realistically he might want to live in in the future, but rent it out for a few years until he’s ready to live independently, or then sell it to buy a different property.

OooohAhhhh · 04/12/2023 19:23

I'd suggest premium bonds. He can be in with a chance of winning a fair wack of prizes with that amount in bonds.

Janedoe82 · 04/12/2023 19:24

Property and rent it out. Could you or parents not help him? He would then have an asset and an income until he is ready to move in.

Northernsouloldies · 04/12/2023 19:25

Definitely try and get him to see the benefit of sound financial advice and not tell mates because £120,000 could get you a lot of mates.

TravellingT · 04/12/2023 19:26

I agree property and rent it out- if there are other adults around to support this. Having a project might be good for him atm, I do hope he's supported the poor thing. He can then move into the property when he's ready, and the rent should pay the mortgage.

Done2much · 04/12/2023 19:29

Premium Bond holdings currently have a limit of 50K but I agree they're a good investment option

lemonyellows · 04/12/2023 19:29

If he doesn't want to buy yet, get financial advice

Koalatreats · 04/12/2023 19:29

House and rent it out. Save any surplus income after paying any tax due.

Bunnycat101 · 04/12/2023 19:36

The circumstances around the inheritance probably do make a difference to the advice. From the first post it sounded like parental bereavement but the second post suggests he’s living with parents. The support network around him (or not) makes a big difference to what may or may not be sensible. Being a landlord at 18 would be a hell of a commitment. I’m not sure it would be something I think would be suitable for a ‘young and vulnerable’ young man unless someone else in the family was willing to do a lot of legwork and even then I’d think twice. I’d get him to invest the majority for at least 10 years and ideally only touch 10-20k to set him up with any further education or training he might want to do after the apprenticeship/get him into his first rental. I’d not want to make any big decisions for at least 6 months if things are a bit raw and dificult.

Original poster
Melonportal · 04/12/2023 19:39

Thanks everyone, that's really helpful. I definitely agree with not telling friends!

OP posts:
LimeCheesecake · 04/12/2023 19:48

Oh and if he does go with a property he rents out until he’s ready to live away from home - he rents it via an agency, ring fences the rent income for house improvements etc and never rents it to a friend. (Every time I know someone who’s rented to a friend, within a few months “something” has happened that means they suddenly can’t pay their rent this month, only 70% next month etc)

Precipice · 04/12/2023 19:52

I'd buy a flat if it would cover it, so I could live there during uni. If it didn't cover it, I'd put it in savings, some in fixed rate bonds and a smaller amount in easy access.

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